Monday, May 01, 2006

Ukraine's economy

Here's a good article on Ukraine's economy from a historical perspective. If true, his claim that the economy is only 63% of the economy of 1990, the pre-independence economy, ought to sober people up a lot.

Better is a relative term. Things might be better now but compared to what?

I can say that things here have improved a lot since I came here in 2002. More buying power, more products to chose from are both a lot better. In fact, Ukraine is the third fastest growing retail market in the world. From where it started, however, just about any growth at any rate would make it that. And again better than what? Than they were? Than they might have been?

There have been lots of opportunity to make things different here. There are still lots of opportunities to do that. We can only hope that these opportunities won't be squandered.


LEvko said...

In the period following the fall of communism in the countries of Eastern Europe, economists frequently underestimated the amount of cash and other assets that their individual citizens had stashed away in 'cookie jars', foreign bank accounts, and so on. Once these people felt comfortable investing and developing small businesses and other enterprises, these assets came to the fore, like 'mushrooms after rain', as Ukrainians say. The amounts were a surprise.

As I blogged before,, sales of new automobiles this year are booming, so the invevitable turn-over of second hand vehicles must be booming too.

The entrepreneurs and some cash is there, waiting. The economic miracle hasn't happened yet, but it could if the government does the right things. There are several precidents in Eastern Europe - if they can do it, so can Ukraine.

Anonymous said...

I don't like repeating myself, but it seems that once more it depends on Yuschenko getting his act together and providing the needed leadership for stability and reform.


LEvko said...

Several articles on Ukrainian internet sources today including UP cite a report from "leading global management consulting firm" A T KEarney on the attractiveness of investing in Ukraine.

A quote below from their '2005 Global Retail Development Index Destination: Ukraine' report,3,1,108,3

"Few countries have shot up the Global Retail Development Index (GRDI) rankings as quickly as rising star Ukraine. Jumping from number 11 last year to third place this year, the country offers a booming retail market, stable economy, proximity to the European Union and scant competition. Although Ukraine still poses its share of challenges, it won’t be long before international retailers begin to move more aggressively into this promising space."